power structure collapse

Institutions, governments, corporations, are all at risk - as the economy pivots to AI.

There will be winners and losers.

But in the transition, they’re likely to do horrible things to hang onto power.

Never underestimate how pathetic humans can be, when their world is imploding.

This lesson outlines power structures, and you need to be cautious during the transition.

Institutional power and authority are inextricably linked, and are based on simple concepts:

1. Centralised control:
• Power sits with a small group. Kings, Prime Ministers, elected officials, bureaucrats and CEOs. They are the group that sets the rules for the rest of us, and they’re willing to use that power.
2. Top down communication:
• Traditionally, rules flow one way, from top down, with little or difficult mechanisms provided for feedback or dissent.
• Every change or shift has to run through mechanisms they control, whether it be regulation, legislation, policy or the courts. All of these mechanisms are costly and time consuming to take on as a lay citizen.

• The system demands obedience over autonomy in almost all fields:
• Everybody in the system is expected to follow rules, respect authority and stay in line.
• Anyone that steps outside the bounds can and will be dealt with harshly.

But this is the achilles heal of the system.

What happens when you introduce something as profound as Artificial Intelligence that upends everything, and gives massive agency to individuals at the ground level?

Think about it. Humans now have:

• Global communication capabilities
• Access to all knowledge
• The ability to program; and
• There’s not a lot stopping them from doing all sorts of things governments dont like.

But this is exactly why we’re going into a dangerous period

• Leaders with an authoritian inclination will become more authoritarian
• Schools will treat students ‘not following rules’ more harshly
• Corporations will start litigating or being more strident in their protection of what is.

If you go against the grain you’ll be singled out as a threat. Institutions or leaders may remove opportunities from you. Leaders under pressure can be quite spiteful.

Let’s breakdown what’s likely to happen as a result of AI:

These are all events that have already started -

AI based economic distruption will challenge traditional corporate hierarchies:

• New business models, remote work, and digital technology could undermine and erode established corporate models.

Societal information flows are likely to start becoming multi-dimensional, and the powers that be could lose control of the message:

• The leadership hierarchy could quickly lose its monopoly on education distribution and come up against smart, persuasive and digitally capable opponents. This will shift public opinion in a multitude of ways.

Regulatory systems designed to slow dissent, and cement power - won’t be able to keep pace with reality and technological innovation

• Governments will find their ability to regulate and control societal behaviour will be circumvented by AI, crypto, bio tech, and other technologies.
• There may be so much change, they simply won’t be able to effectively regulate it, and the concentrations of capital and change will be impossible to stop.

Educational insitutions could quickly be challenged by digital alternatives:

• Online courses, AI learning agents, skills-based certifications, and remote learning can go after traditional high cost base education structures.
• Even the ability to control ‘funding’ might not be important. Students might be able to access higher quality education from sources at a fraction of the cost, with or without government subsidy.
• And every student that ‘leaves’ the status quo system - increases the aggregate cost base on everybody else, so it could collapse faster than you think.

Centralised finance profit margins may be hit by decentralised alternatives:

• Crypto currency, peer-to-peer payments, and digital banking will all challenge traditional government controlled monetary systems.
• You’ll be able to move money in and around the world far faster than ever before - with far more complexity and less oversight.

Traditional media outlets will lose their influence to independent creators and citizen journalists

• Content creators, podcasters, and social media influencers will build large follower bases that rival traditional media, and thus circumventing their ability to influence people as effectively moving foward.

Workplace authority structures within traditional organisations will flatten, as employees demand more power and autonomy:

• The rise of freelancing, entreprenuership, and flexible work arrangements will challenge traditional employer-employee power dynamics. In future it may become much more of a choice as to where effective people work, and that’ll be a real change.

Now you might say, so what? The people in power will simply change the rules to keep us in check. And that’s true. But here is why - it’s probably going to be more difficult this time:

We increasingly distrust our institutions:

• Scandals, misformation, and a clear erosion of living standards have eroded faith that the ‘system’ will look after us.

The rise of individualism:

• Younger generations are prioritising autonomy over blind loyalty.
• They follow creators that align to their values, not figureheads. They might not even watch mainstream media at all.
• They’re increasingly forming their own value and belief systems as well, and this is much more diverse than a single societal construct like organised religon etc.

They’re demanding transparency, and it’s a lot harder to deflect reality

• People can easily question authority on social media now.
• People can amplify calls for proof, and demand the delivery of promises.
• If a company or organisation fails to deliver, individuals can do real damage to them.
• Sensitive plans are easily leaked and ideas spread quickly - accurate and inaccurate ones.

And all of this is happening all at once.

Traditional media organisations are now often just reporting on the reporting of what’s going on on social media.

They have way less power today than they ever did, and this is a real problem.

Distilling what all of this means

The implications of these changes are profound.

On one hand you see two sides of a coin:

The upside

• More voices can speak, innovate, and lead.
• Your society can create and influence without permission.
• Decentralised systems are resilient which makes them harder to break or corrupt.

The downside

• Without clear leadership, misinformation and confusion will spiral.
• Your society could fragment with too many alternative views that lead us no-where.
• If large institutions fail, you’ll introduce a power vacuum, where the social contract supporting a lot of people fails. This can be replaced by new systems, but without authoritity how do you do that?

Conclusions

It is clear that AI driven disruption will reshape our power structures - for the good and the bad.

This transition will be neither smooth nor predictable, but understanding these dynamics is important.

The most prudent approach during the transition will be to:

• Develop resilient, adaptable skills that remain valuable regardless of institutional changes
• Build networks and communities that operate somewhat independently of traditional power structures
• Remain vigilant about reactionary measures from those losing influence
• Engage critically with both established institutions and emerging alternatives

And most importantly: Be mindful as to the real risks you face if you are an innovator. You could potentially be targetted as a threat to the institution. Just be cautious on this front.

Remember that periods of great change creates both opportunity and risk.

Those that navigate that environment thoughtfully - are probbably in the best position to thrive.

The future may not belong to the institutions that exist today, and at some point you may be forced to choose what side you’re on.